Terrorism Risk Insurance PRogram Reauthorization Act of 2014
Floor Speech
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(Ms. VELÁZQUEZ asked and was given permission to revise and extend her remarks.)
Ms. VELÁZQUEZ. Mr. Speaker, I thank the gen tle lady for yielding.
Today I call on my colleagues to pass reauthorization of the Terrorism Risk Insurance Program, a public-private partnership that is vital to continued economic development across the country.
Following the tragic events of 9/11, terrorism became uninsurable. Many insurers left the market, and rates skyrocketed. As a result, thousands of small businesses were impacted, causing job losses and hindering the recovery effort. To address the growing market gap, Congress passed the Terrorism Risk Insurance Act, creating a Federal backstop and enticing insurers back.
I can say without a doubt, our efforts were successful. I have witnessed firsthand how this program has helped New York City recover and prosper over the past 12 years. TRIA has provided thousands of small businesses with the certainty needed to manage long-term costs, grow reliably, and create new jobs. In fact, the program has tripled the number of small businesses that have terrorism protection since 2002. Today, over 60 percent of firms now have coverage.
TRIA also ensures rates remain affordable. Under the program, terrorism coverage averages just 3 to 5 percent of a small business' annual insurance premium.
Is today's bill perfect? No, but it will restore certainty to the marketplace and prevent a rate spike that could force two-thirds of small businesses to stop carrying coverage.
Mr. Speaker, the Government Accountability Office has stated that terrorism remains an uninsurable risk. In light of such findings, the Terrorism Risk Insurance Program continues to be a vital component of our economic growth and national security. I urge my colleagues to support this bill.
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